Fw: Should I transfer out the property from my

Subject: Should I transfer out the property from my corporation?
Hi, David:
Thank you for your very valuable answers. I have a question related to your answer. Hopefully you can answer my question. 
I was suggested by a professional that I should put a rental house in a corporation early this year. The rent is just to cover the monthly payment. There is no other income in that corporation. I am the person who operate that corporation. Should I transfer out that property to my personal name? What is the procedure and cost to transfer that property to my personal name if it is very necessary? If that property is kept in that corporation, what are other disadvantages besides more legal and accounting costs? If the rent collected is over all the costs in the end, what is teh tax rate for that passive income? If you can help me file my corporation return, what is the estimated cost to file T2? 
Best Regards!
david ingram replies:
I do not believe that a corporation makes any sense in your case.
Unfortuantely, if you now transfer it to your name, you will have to pay PPT (personal property tax) on the price again if it is in BC.
I would likley charge between $500 and $700 for the corpoarte return while it woould only be a $125 add-on to a personal return.  And, that is year after year after year.
Because a rental house or commercial building is a specified business, the corporation does NOT qualify for the small business corporate tax rarte although after paying the tax, it does qualify for a refunable tax credit.
If you decided to keep the corpoaration going, my method would be to just pay the profits out to you at the end of the year as a management fee.  This would stop the rather mundane but complicated corporate tax calculations for what would likley be rather small amounts of money.
Following is the answer to a similar question
  david ingram replies:
  Forget about the incorporation.  No tax advantage and a whole lot more accounting and legal costs.
  My opinion is that it does not make sense to have a corporation for rental property unless you have a full time employee who is running it or making major decisions.  At that point a corporation does protect you a bit from lawsuits which might arise from your employee's actions.
  Otherwise as an officer and director of a corporation, you are (or can be found) personally responsible for law suits against the company because you are the "driver".  
  Think of it this way.  Your corporation has not got a lot of money but owns a car that you drive.
  You hit an important person with your car and make him a quadriplegic.  He sues and wins $5,000,000 and your insurance is only good for $1,000,000 or $2,000,000.  At this point, they will go after the company's assets and then when that does not cover the amount, they will go after the assets of you, the driver.
  As the manager of your corporation, you are the driver.
  What you do have to make sure is that the mortgage on your own home is tax deductible.
  For instance, BEFORE you buy the next property, pay down teh existing non-deductible mortgage by whatever amount you have that you were going to use as a down payment on the next property.  Then, use your increase equity on the house to borrow whatever you need for a down payment by using the house as a down payment.
  GOTO www.centa.com, click on newsletters in the top left box and then read the November 2001 edition to find out tips on how to make your mortgage deductible. 
  Use Joan Marsh (604) 535-9981 or Glen Kelleway at 476-0053. They  are both mortgage brokers who can help make your mortgage interest deductible.
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